Category: Stock Market

The Sunstone Metals Ltd (ASX: STM) share price is soaring 25% into the green during afternoon trade today and is now changing hands at 4.9 cents apiece.

That caps off an impressive last week’s worth of trading for the minerals exploration company. Its share price has soared 122% higher in that time.

Let’s check what’s been driving the relatively unknown ASX resource share’s price action lately.

But first – a quick rundown on Sunstone Metals

Sunstone is in the business of minerals exploration and development, boasting gold and copper assets on its books, strategically located in Ecuador.

Specifically, these are the Bramaderos Gold-Copper Project and the El Palmar Copper-Gold Project. Sunstone owns a partial interest in the latter.

It has completed a number of milestones at these projects and looks to repeat previous successes from almost a decade ago when its share price was trading at a peak of $1.15 per share.

Since then, the Sunstone Metals share price has barely managed to crack 5 cents a share on average which leads us to today.

At the time of writing, Sunstone Metals has a market capitalisation of $106 million.

Why is the Sunstone Metals share price charging higher this past week?

Sunstone shares have been on the move since the company announced it had completed first assays at its El Palmar site last week.

Its announcement noted Sunstone intersected 480m of gold and copper in its first drill hole at the site. The drill included “high-grade gold sections that are characteristic of gold-rich porphyry systems”.

Of the drill holes completed, assays from the remaining two holes are expected in around five to six weeks.

Sunstone is acquiring the remainder of El Palmar under stipulations made in the governing contract for the site. Under that agreement, the company has met all of its obligations to move to 51% ownership and commenced share transferral.

The company also noted it is fully funded for ongoing exploration at El Palmar with total liquidity of approximately $21 million.

Last week’s announcement builds on a previous update the company made back in September.

In that update, the company gave details on drill results from its Bramaderos project.

The assay results indicated “the potential for Bramaderos to host a substantial gold-copper porphyry system”. There are another six holes planned as part of the maiden resource program at this site.

Why are these advancements good news for Sunstone Metals shares?

The price of gold and copper has been volatile these past few months although each metal has been gaining since last month.

For instance, in that time, copper now trades 5% higher at US$4.29/lbs whereas gold has come up US$32/t.oz.

Given these near-term strengths, investors appear hungry for ASX metals shares with the S&P/ASX 300 Metals & Mining index (XMM) climbing almost 4% in the past week. That’s well ahead of the S&P/ASX 200 Index (ASX: XJO)’s loss of 0.07%.

Similarly, the S&P/ASX All Ordinaries Gold Index (XGD) has jumped 5.5% higher in the last week, further indicating the strengths in the broad sector.

Given the company’s recent advancements, in addition to the rising price of gold and copper, it’s clear what’s likely been fuelling the Sunstone share price lately.

Sunstone Metals share price snapshot

The Sunstone Metals share price has delivered a 242% return this year to date, extending its gain in the last 12 months to 152%.

It’s rallied 100% in the past week although, prior to its recent gains, was trading relatively flat.

Nonetheless, it is still ahead of the broad index’s return of around 20% in the last year.

The post The Sunstone Metals (ASX:STM) share price is up 122% in a week. Here’s why appeared first on The Motley Fool Australia.

More reading

• Diablo Resources (ASX:DBO) share price tanks 15% following IPO
• Santos (ASX:STO) share price slumps as CEO flags possible energy crisis
• Why Ansell, Predictive Discovery, Strike Energy, & Zip shares are sinking
• Star (ASX:SGR) share price falls again; reaches new 52-week low
• Here are the 3 heaviest traded ASX 200 shares on Tuesday so far

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Diablo Resources Ltd (ASX: DBO) share price has struggled to take off following its debut on the ASX this afternoon.

The company successfully raised $6.5 million at 20 cents per share to drive its gold-copper exploration activities.

At the time of writing, the Diablo share price is 17 cents, a fall of 15%.

What does Diablo Resources do?

Diablo’s portfolio comprises three gold-copper projects located in western United States.

The Devil’s Canyon Project is prospective for gold and copper, located in Nevada.

Minor copper mining occurred within the project area during the 1950s and exploration activities around the region date back to 1987, testing for gold mineralisation. Diablo is currently modelling magnetic survey data and undergoing further mapping and sampling for Devil’s Canyon prior to drilling later this year.

The Western Desert Project is located in western Utah, close to the Nevada border.

This is another prospective project for gold and copper mineralisation with a history of exploration activities. Diablo has identified a number of exploration targets and plans to undergo drilling activities in the second half of 2021.

Finally, the Lone Pine Project is considered prospective for gold, located in Idaho.

Gold was discovered in the project in 1882, with a majority of development work completed on the Lone Pine vein zone prior to 1907. During 2020, 11 diamond drill holes were completed, with all drill holes intersecting a mineralised gold zone.

In addition to drilling, the company advised that regional mapping and rock chip sampling was completed, identifying numerous other gold occurrences within the project area. Looking ahead, Diablo plans to undergo additional drill holes and airborne magnetic surveying for later in 2021.

Why the Diablo Resources share price fell flat

Not all initial public offerings are made equal.

Just an hour after Diablo’s float, another exploration company by the name of Minerals 260 Limited (ASX: MI6) also made its ASX debut.

Unlike Diablo, the Minerals 260 share price rallied as high as 75 cents from a listing price of 50 cents per share. However, it has dropped back to 60 cents at the time of writing.

Minerals 260 attracted a much bigger audience, citing its IPO as ‘oversubscribed’ with almost 15 million shares trading hands at the time of writing.

By comparison, Diablo’s current volume sits at around 5.2 million.

Furthermore, gold prices have remained stagnant since late last year. This has resulted in gold players underperforming the broader S&P/ASX 200 Index (ASX: XJO).

The lack of upside from gold in the past 12-months could be a factor weighing on the Diablo Resources share price.

What’s next for Diablo Resources?

Diablo has a busy schedule consisting of preliminary exploration activities and drilling.

According to its prospectus, the company plans to allocate $1.935 million towards the Devil’s Canyon Project, $2 million to the Western Desert Project, and $1.465 million to the Line Pine Project.

The post Diablo Resources (ASX:DBO) share price tanks 15% following IPO appeared first on The Motley Fool Australia.

More reading

• The Sunstone Metals (ASX:STM) share price is up 122% in a week. Here’s why
• Santos (ASX:STO) share price slumps as CEO flags possible energy crisis
• Why Ansell, Predictive Discovery, Strike Energy, & Zip shares are sinking
• Star (ASX:SGR) share price falls again; reaches new 52-week low
• Here are the 3 heaviest traded ASX 200 shares on Tuesday so far

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Santos Ltd (ASX: STO) share price is struggling after the company’s CEO commented that Australia might not dodge the current energy crisis.

Santos’ managing director and CEO Kevin Gallagher, recently spoke at the Australian Financial Review’s Energy and Climate Summit. He reportedly noted that, if international liquid natural gas (LNG) prices don’t fall soon, Australia will inevitably be affected.

At the time of writing, the Santos share price is $7.39, 1.34% lower than its previous close.

That’s relatively in line with the broader energy market. Right now, the S&P/ASX 200 Energy Index (ASX: XEJ) is down around 1.7%. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 0.3%.

Let’s take a closer look at the oil and gas producer’s boss’ comments.

Santos share price slides amid energy concerns

The Santos share price is sliding today after the company’s boss flagged that the international energy crisis might soon reach Australia.

The price of LNG has soared to all-time highs in recent weeks. According to Reuters, the surge was spurred by the ongoing energy crunch in China and low European inventories.  

The outlet stated that experts estimate the average price for a metric million British thermal units (MMBtu) of LNG for November delivery into Northeast Asia to be around US$37.

While the commodity’s price has since relaxed, it’s still above ideal levels.

According to reporting by the Australian Financial Review (AFR), Santos’ managing director and CEO Kevin Gallagher, has said that if gas prices don’t ease, Australia’s contract tariffs will be pushed higher.

As a result, the pressure on manufacturers dependant on LNG might increase. The AFR quoted Gallagher as saying:

We know what the complaints from the manufacturers were here on the east coast when prices approached double figures…

So you can only imagine what that would mean for us here in terms of the difficulty to economically run those same manufacturing businesses, if they’re exposed to the same international prices.

Gallagher reportedly blames the surging LNG price on underinvestment spurred by environmental, social, and governance (ESG) measures, as well as drops in the price of oil.  

The post Santos (ASX:STO) share price slumps as CEO flags possible energy crisis appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. In afternoon trade, the benchmark index is down 0.4% to 7,269.9 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

Ansell Limited (ASX: ANN)

The Ansell share price is down 4.5% to $32.30. Investors have been selling the health and safety protection solutions company’s shares following a bearish broker note out of Macquarie Group Ltd (ASX: MQG). Its analysts have downgraded the company’s shares to an underperform rating and cut the price target on them to $32.00. Macquarie believes that recent trends pose downside risk to the market’s earnings expectations.

Predictive Discovery Ltd (ASX: PDI)

The Predictive Discovery share price has crashed 25% to 17.5 cents. This morning the Guinea-based gold explorer advised that two of its deposits and some other parts of its permits are located within the Outer Buffer Zone of the Upper Niger National Park. The Outer Buffer Zone of the Upper Niger National Park is a protected area where the mining of mineral deposits is not permitted.

Strike Energy Ltd (ASX: STX)

The Strike Energy share price is down a further 13.5% to 19.5 cents. Investors have been selling this energy company’s shares following the release of its maiden Perth Basin Gas Reserve. According to the release, 300 petajoule (PJ) 2P and up to 372 PJ 3P gross gas reserves at the West Erregulla gas field in the Kingia Sandstone have been certified. Analysts at Macquarie note that this is significantly below (28% to 44%) management’s previous guidance.

Zip Co Ltd (ASX: Z1P)

The Zip share price is down 3.5% to $6.62 despite there being no news out of the buy now pay later provider. This decline appears to have been driven by broad weakness in the tech sector today following a poor night on the Nasdaq index. The S&P/ASX All technology Index is down 1.9% at the time of writing.

The post Why Ansell, Predictive Discovery, Strike Energy, & Zip shares are sinking appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Ansell Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Star Entertainment Group Ltd (ASX: SGR) share price has gone from bad to worse.

At the time of writing, shares in the casino operator are trading for $3.20 – down 3.03%. Earlier in the session shares reached a new 52-week low of $3.14 each.

The negative price movement is the continuation of the selloff that began yesterday, after a joint investigation by the Sydney Morning Herald (SMH), The Age, and 60 Minutes aired explosive allegations of money laundering, facilitating organised crime, fraud, and foreign interference at its casinos.

Yesterday, shares plunged an astounding 22.9% to end the day at what was then their lowest point in 10 months. Today has seen a continuation of the selloff, with shares hitting a new 52-week low.

Let’s take a closer look.

The allegations against Star

The Nine Entertainment Co Holdings Ltd (ASX: NEC) outlets are alleging the company overlooked serious misconduct at its casinos for years.

They claim despite a report by global audit firm KPMG warning Star it wasn’t doing enough to combat money laundering, terrorism financing, and exploitation, Star continued to overlook such activities.

They also allege that rather than ending its relationship with gamblers who showed “red flags”, Star provided them with incentives. In fact, the publications claim Star “cultivated” punters who were “allegedly associated with criminal or foreign-influenced operations”.

Similar allegations against gaming compatriot (and one-time takeover target) Crown Resorts Ltd (ASX: CWN) saw that company refused a gaming licence in New South Wales. It also resulted in royal commissions in Victoria and Western Australia to examine whether it should still be allowed to operate in those states.

Investors are seemingly worried the regulatory eye will fall on Star in a similar way, at least judging by the falling Star share price over the last 2 days.

How did Star respond?

In a statement to the ASX released yesterday, Star said it was “concerned by a number of assertions within the media reports that it considers misleading”.

The company added it already operates in a heavily regulated industry and that they are subject to “ongoing regulatory oversight” such as compliance checks and periodical reviews. Finally, it added its support to the recommendations of the Bergin Inquiry into casino regulation.

This statement did not appease investors yesterday. Judging by the continuing fall in the Star share price, it isn’t making much of an impact today either.

Star share price snapshot

Over the past 12 months, the Star share price has decreased by 5.44%. However, on Friday, it had actually appreciated by 27%.

Star shares hit their 52-week high only 5 days ago, which goes to show nothing can be taken for granted when it comes to investing.

The post Star (ASX:SGR) share price falls again; reaches new 52-week low appeared first on The Motley Fool Australia.

More reading

• Here are the 3 heaviest traded ASX 200 shares on Tuesday so far
• Star Entertainment and SkyCity share prices plunge, Whitehaven Coal up. Scott Phillips on Nine’s Late News
• Why Afterpay, Platinum, Star, & Strike Energy shares are sinking
• Here are the 3 heaviest traded ASX 200 shares on Monday
• Which ASX 300 shares are making headlines on Monday?

Motley Fool contributor Marc Sidarous owns shares of Star Entertainment Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is having another day in the red today. At the time of writing, the ASX 200 is down by 0.47% to 7,265.7 points. But let’s move on from that rather depressing statistic and instead check out the heaviest traded ASX 200 shares by volume so far today, according to investing.com.

The 3 heaviest traded ASX 200 shares on Tuesday so far

Beach Energy Ltd (ASX: BPT)

ASX 200 oil company Beach is our first share to check out today. This Tuesday has seen a hefty 16.8 million Beach shares swap hands so far. There are no major news or announcements out this Tuesday that might explain this trading volume.

However, the Beach share price has had something of a wild day. This energy share is currently down by a nasty 2.93% to $1.43 a share. It’s probably this sharp drop that is behind the elevated trading volumes we are seeing today.

Pilbara Minerals Ltd (ASX: PLS)

Lithium producer Pilbara Minerals is next up today. This ASX 200 share has seen a sizeable 23.3 million of its shares change hands on the ASX boards thus far. This appears to be a consequence of the volatility we are seeing in lithium shares like Pilbara this Tuesday.

The company had a great morning on the ASX, rising as high as $2.04 a share around lunchtime. However, sentiment seems to have slipped this afternoon and Pilbara is currently down 0.76% at $1.95 a share. It’s this volatility that is probably behind this high trading volume.

Star Entertainment Group Ltd (ASX: SGR)

Embattled ASX 200 gaming and casino company Star Entertainment tops this list for the second day in a row today, with a whopping 25.4 million shares bought and sold so far.

As we covered at the time, Star had a shocker yesterday, falling more than 21% on the back of allegations the company has been allowing illegal conduct at its gaming institutions. At the time of writing, the Star share price has fallen another 2.88% and is currently sitting at $3.205 a share. This is probably why we are seeing so many shares swapping owners today.

The post Here are the 3 heaviest traded ASX 200 shares on Tuesday so far appeared first on The Motley Fool Australia.

More reading

• Star (ASX:SGR) share price falls again; reaches new 52-week low
• Why is the Beach Energy (ASX:BPT) share price falling on Tuesday?
• Why the Ansell (ASX: ANN) share price is crashing today
• ASX lithium shares lift as spot prices hit all-time highs
• ASX 200 (ASX:XJO) midday update: Westpac’s $1.3bn earnings hit, Ansell sinks

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Newcrest Mining Ltd (ASX: NCM) share price is in the green following a massive growth update from the company.

The company’s board has progressed 3 of the company’s projects to the feasibility stage today, leaving Newcrest with 4 pre-feasibility study (PFS) stage organic growth projects.

They are each expected to deliver internal rates of return of 16% or higher and, together, have a net present value of $3.2 billion.

At the time of writing, the Newcrest share price is $24, 0.42% higher than its previous close.

Let’s take a closer look at today’s exciting news from the gold mining company.

Newcrest share price boosted on 3 project updates

The Newcrest Mining share price is gaining today after the company released a barrage of positive pre-feasibility study results.

Additionally, the company plans to fund its 4 up-and-coming projects with existing liquidity and operating cash flow.

Together, the projects will boost Newcrest’s copper production by more than 37% and reduce its all-in sustaining costs by more than 50% to around $500 per ounce by 2030.

Newcrest’s managing director and CEO Sandeep Biswas, commented on the findings, saying:

Newcrest is in an enviable position… The progression of these studies is consistent with our long term strategy of pursuing profitable growth in a safe and sustainable manner from a portfolio of long-life, high-quality assets optimised through innovation and creativity.

The projected growth profile of our copper production is particularly exciting and would allow us not just to advance our own sustainability objectives, but to participate in the potential opportunities presented by a global shift to decarbonisation.  

Here’s a brief outline of the newly advanced future projects boosting the Newcrest share price today:

Red Chris Block Cave

The Red Chris Block Cave Project is in Canada. Newcrest bought a 70% hold in the project in 2019.

Red Chris Block Cave has now been found to have the potential to be a tier 1 producer with a mine life of 31 years.

It has an initial ore reserve estimate of 8.1 million ounces of gold and 2.2 million tonnes of copper. The company expects an average annual gold production of 158,000 ounces and copper production of 48,500 tonnes over the mine’s life.

Additionally, drilling is continuing to expand the project’s resource base.

Red Chris Block Cave has an internal rate of return of 17% and a net present value of around $1.28 billion

Havieron

The Australian Havieron Project has been slapped with an estimated average gold production of 160,000 ounces each year over an initial 9-year mine life.

Newcrest now holds a 70% interest in the project’s joint venture. Additionally, the company expects the project’s maiden production to occur in financial year 2024.

The mine’s all-in sustaining cost is expected to be US$743 per ounce. It has a predicted internal rate of return of 16% and a net present value of $160 million

Lihir

Perhaps the most exciting announcement bolstering the Newcrest share price today is of the company’s Paupa New Guinean Lihir Project.

The project’s PFS confirmed Lihir is capable of producing more than 1 million ounces of gold every year for at least 10 years, starting in financial year 2024.

The PSF has also increased Lihir’s ore reserves by 1 million ounces of gold.

It has an internal rate of return of 37% and a net present value of $1284 million. Lihir’s feasibility study is expected to be completed in the fourth quarter of this financial year.

Cadia

Finally, the company released the Australian Cadia Project’s PFS results in August.

The project has been found to have a total ore production of 258 million tonnes. It is capable of producing 3.5 million ounces of gold and 660,000 tonnes of copper.

It also has an internal rate of return of 22% and a net present value of around $1.48 billion.

Newcrest Mining share price snapshot

Despite today’s abundance of news, the Newcrest Mining share price is still in the long-term red.

The company’s stock has slumped 11% since the start of 2021. It is also 24% lower than it was this time last year.

The post Newcrest (ASX:NCM) share price lifts as upcoming projects valued at $3.2b appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Webjet Limited (ASX: WEB) share price is out of form and trading lower on Tuesday.

In afternoon trade, the online travel agent’s shares are down 2.5% to $6.09.

Is the weakness in the Webjet share price a buying opportunity?

One leading broker that is likely to see today’s weakness in the Webjet share price as a buying opportunity is Goldman Sachs.

This morning the broker released a note looking at the travel sector and spoke very positively about the company.

According to the release, Goldman has retained its buy rating and lifted its price target on the company’s shares to $7.00.

Based on the current Webjet share price, this implies potential upside of 15% for investors over the next 12 months.

What did the broker say?

Goldman notes that there has been yet another change in the outlook for the Australian travel industry, this time in a positive way.

It commented: “The outlook for travel in Australia has yet again changed significantly since the last update, this time in a positive direction with international reopening officially announced. Internationally, while the outbreak of the Delta variant slowed domestic recovery into September, frequent data updates indicate that recovery has since progressed positively, especially in terms of international travel recovery.”

This has led to the broker maintaining its domestic travel recovery estimates but bringing forward its international travel recovery timeline.

Goldman said: “We maintain our expectations for broader domestic travel recovery in Australia to begin through December and return to pre-Delta wave levels by March 2022, but update our views on International travel recovery from Australia to begin by the end of this year. We now expect pre-COVID travel levels to be achieved in late FY23 rather than FY24 in terms of international travel from Australia in view of the quick rebound seen in other regions.”

“We also bring forward our expectations of regaining pre-COVID international travel levels in Europe and the US to FY23, while we expect Asia to continue to lag,” it added.

What does this mean for Webjet?

Goldman believes the sum of the above will be double digit earnings growth for Webjet between FY 2019 and FY 2024.

It explained: “Our revised earnings outlook implies a 5 year CAGR EBITDA growth of +11.6% over FY19-24e for Webjet, with Webbeds expected to grow at c. 16% CAGR over the same period driven by an improved focus in the Americas region and cost improvements at the other end of recovery.”

Though, the good news for shareholders and the Webjet share price is that there could be upside to these forecasts. This is thanks to Webjet’s strong balance sheet.

Goldman added: “We also believe that the recovery curve has now turned, implying a strengthening cash balance offering WEB the firepower to engage in strategic M&A opportunities where available.”

“Overall, the stock currently trades at a 20.2x full dilution P/E at recovery (FY24), below the peer group multiple at 22.8x,” it concluded.

The post Top broker sees 15% upside in the Webjet (ASX:WEB) share price appeared first on The Motley Fool Australia.

More reading

• Why the Webjet (ASX:WEB) share price has beaten the ASX 200 in the last 6 months
• Can the Webjet share price fly to $7 by the end of 2021?
• It hasn’t been a great week so far for the Webjet (ASX:WEB) share price
• These are the 10 most shorted ASX shares
• Why ASX 200 travel shares are having a bumper day

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Vicinity Centres (ASX: VCX) share price is edging lower on Tuesday afternoon. This comes after the leading retail property group provided an update in regards to bolstering its asset portfolio.

At the time of writing, Vicinity shares are down 0.18% to $1.68.

What did Vicinity announce?

In its release, Vicinity advised it has reached a conditional agreement with Australian Prime Property Fund Retail (a wholesale fund managed by Lendlease).

The deal will see Vicinity acquire a 50% interest in Harbour Town Premium Outlets Gold Coast, Queensland for $358 million.

The remaining stake in the asset will continue to be held by Australia’s oldest private property developer, Lewis Land Group. Vicinity will undertake all leasing activity, while Lewis Land Group will manage the property.

However, the news has not excited investors. The Vicinity share price edged into the green in morning trade before slipping back.

It’s worth noting the acquisition is conditional upon Lewis Land Group waiving their pre-emptive right. The property developer can purchase the asset as co-owner of Harbour Town.

However, should Vicinity be able to acquire the centre, the investment would yield an additional revenue stream. Harbour Town comprises a Woolworths supermarket, Reading cinemas, 17 mini-majors, 189 specialty stores, 7 kiosks, and 8 offices.

Vicinity plans to tap into its existing debt facilities to fund the purchase. Settlement is expected to occur on 30 November 2021.

Vicinity CEO and managing director Grant Kelley commented:

Today’s announcement reflects our strategy to invest in premium retail assets where we can buy well and add value. Harbour Town is located in an attractive trade area and the centre’s annual MAT [moving annual total] is more than double the average MAT for Vicinity’s current outlet portfolio and is expected to grow at more than 3% per annum to 2031.

We will continue to optimise our asset portfolio by actively considering acquisition opportunities where we can add value as well as divestment opportunities that make strong strategic and economic sense for Vicinity and its securityholders.

About the Vicinity share price

Over the past 12 months, the Vicinity share price has gained almost 20% and is up about 5% year to date.

Based on today’s price, Vicinity presides a market capitalisation of roughly $7.65 billion and has approximately 4.5 billion shares outstanding.

The post Vicinity Centres (ASX:VCX) share price struggles amid acquisition news appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• Leading brokers name 3 ASX shares to sell today
• Don’t bet on a big reopening rebound for ASX 200 retail landlords: Macquarie

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Altium Limited (ASX: ALU)

According to a note out of Citi, its analysts have retained their buy rating and $35.40 price target on this electronic design software company’s shares. Citi has been looking at Altium’s Octopart search engine business and estimates that site visits were up 68% year on year during the September quarter. This bodes well for its first half results. As does the fact that Altium has not been discounting its licenses in the US, UK, Germany, and Australia. The Altium share price is trading at $33.54 today.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Ord Minnett reveals that its analysts have retained their buy rating but trimmed their price target on this iron ore miner’s shares slightly to $25.00. Although the broker has downgraded its iron ore price estimates for the next few years, it remains positive on Fortescue. This is due to its attractive valuation following a recent and significant pullback. The Fortescue share price is fetching $14.89 today.

IDP Education Ltd (ASX: IEL)

Analysts at Morgan Stanley have retained their overweight rating and lifted their price target on this language testing company’s shares to $40.20. The broker remains very positive on IDP Education’s growth prospects due to its acquisition of the British Council’s (BC) India IELTS operations, its digital business, and efficient cost structure. The IDP Education share price is trading at $34.79 on Tuesday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium and Idp Education Pty Ltd. The Motley Fool Australia owns shares of and has recommended Altium. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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